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Student loans now paid over 40 years

Students in England will have to pay back university loans over 40 years instead of 30 under swingeing reforms designed to save the Treasury tens of billions of pounds… just not you…  The number of students expected to pay back their loan in full is expected to double from under a quarter (23%) to ore than half (52%) as a result of the changes, which will see many graduates paying for their degree until retirement in what was described as a “lifelong graduate tax”. In a move designed to sugar the pill, interest rates on student loans will be slashed for new borrowers and set at no higher than the rate of inflation from next year – but experts said this would disproportionately benefit higher-earning graduates. University leavers would pay thousands of pounds more for their degrees over their lifetime than they do now. “It’s effectively a lifelong graduate tax for most,” Extending this period means the majority of lower and mid earners will keep paying for many more years, increasing their costs by thousands. Yet the highest earners who would clear [their debt] within the current 30 years won’t be impacted.” Bridget Phillipson, Labour’s shadow education secretary, accused the government of delivering another stealth tax for new graduates which will hit those on low incomes hardest… I think this government misses the point, education is not just for personal gain! No…Education is what makes a country what it is… 


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